Financial Release

• Diluted Earnings Per Share $1.40
• Net Income $56.9 Million
• Board of Directors Approves Dividend of $0.65 Per Share

HONOLULU--(BUSINESS WIRE)--Jul. 22, 2019-- Bank of Hawaii Corporation (NYSE: BOH) today reported diluted earnings per share of $1.40 for the second quarter of 2019, down from diluted earnings per share of $1.43 in the previous quarter, and up from diluted earnings per share of $1.30 in the same quarter last year. Net income for the second quarter of 2019 was $56.9 million compared with net income of $58.8 million in the first quarter of 2019 and net income of $54.7 million in the second quarter of 2018.

Loan and lease balances increased to $10.8 billion at June 30, 2019, up 2.0 percent from March 31, 2019, and up 7.0 percent compared with June 30, 2018. Total deposits were $15.5 billion at the end of the second quarter of 2019, up 1.5 percent from March 31, 2019 and up 3.7 percent compared with June 30, 2018.

“Bank of Hawaii Corporation continued to perform well during the second quarter of 2019,” said Peter Ho, Chairman, President and CEO. “Loans and deposits continued to grow, asset quality remains strong, and we maintained our disciplined approach to risk, capital, and expense management.”

The return on average assets for the second quarter of 2019 was 1.31 percent, down from 1.38 percent in the previous quarter and up from 1.30 percent in the same quarter last year. The return on average equity for the second quarter of 2019 was 17.97 percent, down from 18.81 percent for the first quarter of 2019 and up from 17.68 percent for the second quarter of 2018. The efficiency ratio for the second quarter of 2019 improved to 54.69 percent compared with 55.22 percent in the previous quarter and 56.12 percent in the same quarter last year.

For the six-month period ended June 30, 2019, net income was $115.7 million, an increase of $6.9 million from net income of $108.8 million during the same period last year. Diluted earnings per share were $2.82 for the first half of 2019, an increase of $0.25 from diluted earnings per share of $2.57 for the first half of 2018.

The return on average assets for the six-month period ended June 30, 2019 was 1.34 percent compared with the return on average assets of 1.29 percent for the same six months in 2018. The year-to-date return on average equity was 18.39 percent for the first half of 2019 compared with the return on average equity of 17.71 percent for the six-month period ended June 30, 2018. The efficiency ratio for the first half of 2019 improved to 54.95 percent compared with 57.01 percent in the same period last year.

Financial Highlights

Net interest income, on a taxable equivalent basis, for the second quarter of 2019 was $124.7 million, a decrease of $1.1 million compared with $125.8 million in the first quarter of 2019 and an increase of $2.9 million compared with $121.8 million in the second quarter of 2018. Net interest income, on a taxable equivalent basis, for the first half of 2019 was $250.5 million, an increase of $8.4 million compared with net interest income of $242.1 million for the first half of 2018. Analyses of the changes in net interest income are included in Tables 8a, 8b and 8c.

The net interest margin was 3.04 percent for the second quarter of 2019, down 8 basis points from 3.12 percent in the previous quarter and equal to the net interest margin of 3.04 percent in the second quarter of 2018. The net interest margin for the first six months of 2019 was 3.08 percent compared with the net interest margin of 3.02 percent for the same six-month period last year.

Results for the second quarter of 2019 included a provision for credit losses of $4.0 million compared with $3.0 million in the previous quarter and $3.5 million in the same quarter last year. The provision for credit losses during the first half of 2019 was $7.0 million compared with a provision for credit losses of $7.6 million during the same period in 2018.

Noninterest income was $45.5 million in the second quarter of 2019, an increase of $1.8 million compared with $43.7 million in the first quarter of 2019 and an increase of $4.2 million compared with $41.3 million in the second quarter of 2018. There were no significant items in noninterest income during the second quarter of 2019. Noninterest income in the first quarter of 2019 included a $1.4 million commission related to insurance products offered through a third-party administrator. Noninterest income during the second quarter of 2018 included a negative adjustment of $1.0 million related to a change in the Visa Class B conversion ratio. Noninterest income for the first half of 2019 was $89.1 million, an increase of $3.8 million compared with noninterest income of $85.3 million for the first half of 2018.

Noninterest expense was $92.7 million in the second quarter of 2019, a decrease of $0.4 million compared with $93.1 million in the first quarter of 2019 and an increase of $1.9 million compared with $90.8 million in the second quarter last year. There were no significant items in noninterest expense during the second quarter of 2019 or the second quarter of 2018. Noninterest expense in the first quarter of 2019 included seasonal payroll expenses of approximately $2.7 million. Noninterest expense for the first half of 2019 was $185.8 million, an increase of $0.6 million compared with noninterest expense of $185.2 million for the first half of 2018. An analysis of noninterest expenses related to salaries and benefits is included in Table 9.

The effective tax rate for the second quarter of 2019 was 21.84 percent compared with 18.85 percent in the previous quarter and 18.94 percent in the same quarter last year. The higher effective tax rate in the second quarter of 2019 was primarily due to repositioning of the investment securities portfolio which reduced municipal securities and the related tax benefit. The effective tax rate for the first half of 2019 was 20.35 percent compared with an effective tax rate of 17.60 percent during the same period last year.

The Company’s business segments are defined as Retail Banking, Commercial Banking, Investment Services and Private Banking, and Treasury & Other. Results for the business segments are determined based on the Company’s internal financial management reporting process and organizational structure. Selected financial information is included in Tables 13a and 13b.

Asset Quality

The Company’s asset quality continued to remain strong during the second quarter of 2019. Total non-performing assets were $21.8 million at June 30, 2019 compared with $17.9 million at March 31, 2019 and $15.2 million at June 30, 2018. The increase in non-performing assets during the second quarter of 2019 is due to the addition of commercial mortgage loan exposure to one customer in Guam. As a percentage of total loans and leases, including foreclosed real estate, non-performing assets were 0.20 percent at the end of the second quarter of 2019 compared with 0.17 percent at the end of the first quarter of 2019 and 0.15 percent at the end of the second quarter last year.

Accruing loans and leases past due 90 days or more were $6.4 million at June 30, 2019 compared with $6.1 million at March 31, 2019 and $13.3 million at June 30, 2018. Restructured loans not included in non-accrual loans or accruing loans past due 90 days or more were $48.6 million at June 30, 2019, essentially flat with March 31, 2019 and down from $50.2 million at June 30, 2018. More information on non-performing assets and accruing loans and leases past due 90 days or more is presented in Table 11.

Net loan and lease charge-offs during the second quarter of 2019 were $2.4 million or 0.09 percent annualized of total average loans and leases outstanding. Loan and lease charge-offs of $5.1 million during the quarter were partially offset by recoveries of $2.8 million. Net charge-offs during the first quarter of 2019 were $3.7 million or 0.14 percent annualized of total average loans and leases outstanding and comprised of $6.8 million in charge-offs and recoveries of $3.2 million. Net charge-offs during the second quarter of 2018 were $3.3 million or 0.13 percent annualized of total average loans and leases outstanding and comprised of $5.7 million in charge-offs and recoveries of $2.4 million. Net charge-offs during the first half of 2019 were $6.0 million or 0.12 percent annualized of total average loans and leases outstanding compared with net charge-offs of $6.8 million or 0.14 percent annualized of total average loans and leases outstanding for the first half of 2018.

The allowance for loan and lease losses was $107.7 million at June 30, 2019 compared with $106.0 million at March 31, 2019 and $108.2 million at June 30, 2018. The ratio of the allowance for loan and lease losses to total loans and leases was 1.00 percent at June 30, 2019, a decrease of 1 basis point from the previous quarter and 8 basis points from the second quarter last year. The reserve for unfunded commitments of $6.8 million at June 30, 2019 was unchanged from March 31, 2019 and June 30, 2018. Details of loan and lease charge-offs, recoveries and the components of the total reserve for credit losses are summarized in Table 12.

Other Financial Highlights

Total assets were $17.7 billion at June 30, 2019, up from $17.4 billion at March 31, 2019 and $17.1 billion at June 30, 2018. Average total assets were $17.5 billion during the second quarter of 2019 compared with $17.2 billion during the previous quarter and $16.9 billion during the second quarter last year.

The investment securities portfolio was $5.6 billion at June 30, 2019, up from $5.5 billion at March 31, 2019 and down from $5.7 billion at June 30, 2018. The portfolio remains largely comprised of securities issued by U.S. government agencies and includes $3.0 billion in securities held to maturity and $2.6 billion in securities available for sale. The securities portfolio at March 31, 2019 included $3.7 billion in securities held to maturity and $1.9 billion in securities available for sale compared with $3.6 billion in securities held to maturity and $2.1 billion in securities available for sale at June 30, 2018.

Total loans and leases were $10.8 billion at June 30, 2019, up from $10.5 billion at March 31, 2019, and $10.1 billion at June 30, 2018. Average total loans and leases increased to $10.6 billion during the second quarter of 2019 compared with $10.5 billion during the previous quarter and $10.0 billion during the same quarter last year. The commercial loan portfolio was $4.1 billion at June 30, 2019, up $102.1 million or 2.6 percent from commercial loans of $4.0 billion at March 31, 2019, and up $286.0 million or 7.5 percent from commercial loans of $3.8 billion at June 30, 2018. The consumer loan portfolio increased to $6.7 billion at June 30, 2019, up $108.5 million or 1.7 percent from consumer loans of $6.5 billion at March 31, 2019 and up $419.8 million or 6.7 percent from consumer loans of $6.2 billion at June 30, 2018. Loan and lease portfolio balances are summarized in Table 10.

Total deposits were $15.5 billion at June 30, 2019, up from $15.3 billion at March 31, 2019 and $14.9 billion at June 30, 2018. Average total deposits were $15.2 billion during the second quarter of 2019, up from $15.0 billion during the previous quarter and $14.7 billion during the same quarter last year. Consumer deposits of $7.9 billion at June 30, 2019 were down $64.5 million or 0.8 percent from consumer deposits at March 31, 2019 and up $207.8 million or 2.7 percent from consumer deposits of $7.7 billion at June 30, 2018. Commercial deposits increased to $6.2 billion at June 30, 2019, up $16.9 million or 0.3 percent from commercial deposits of $6.2 billion at March 31, 2019 and up $257.6 million or 4.3 percent from commercial deposits of $5.9 billion at June 30, 2018. Other deposits, including public funds, were $1.4 billion at June 30, 2019, up $269.1 million from other deposits of $1.2 billion at March 31, 2019 and up $80.0 million from other deposits of $1.3 billion at June 30, 2018. The increase in other deposits from the previous quarter was largely due to seasonal public demand deposits. Deposit balances are summarized in Tables 7a, 7b, and 10.

During the second quarter of 2019, the Company repurchased 433.4 thousand shares of common stock at a total cost of $34.9 million under its share repurchase program at an average cost was $80.49 per share. From the beginning of the share repurchase program initiated during July of 2001 through June 30, 2019, the Company has repurchased 56.2 million shares and returned over $2.2 billion to shareholders at an average cost of $39.81 per share. Remaining buyback authority under the share repurchase program was $86.9 million at June 30, 2019. From July 1 through July 19, 2019, the Company repurchased an additional 84.0 thousand shares of common stock at an average cost of $81.75 per share.

Total shareholders’ equity increased to $1.29 billion at June 30, 2019 compared with $1.27 billion at March 31, 2019 and $1.25 billion at June 30, 2018. The Tier 1 Capital Ratio at June 30, 2019 was 12.46 percent compared with 12.75 percent at March 31, 2019 and 13.27 percent at June 30, 2018. The Tier 1 leverage ratio at June 30, 2019 was 7.36 percent compared with 7.46 percent at March 31, 2019 and 7.53 percent at June 30, 2018.

The Company’s Board of Directors declared a quarterly cash dividend of $0.65 per share on the Company’s outstanding shares. The dividend will be payable on September 16, 2019 to shareholders of record at the close of business on August 30, 2019.

Hawaii Economy

General economic conditions in Hawaii continued to remain positive during the second quarter of 2019. The statewide seasonally-adjusted unemployment rate in Hawaii of 2.8 percent in June 2019 continues to remain among the lowest in the United States compared with 3.7 percent nationally. For the first five months of 2019, total visitor arrivals increased 3.8 percent and air seat capacity increased 1.6 percent compared to the same period in 2018. For the first five months of 2019, visitor spending decreased 3.1 percent even with the continued growth in arrivals. The real estate market remained active during the first half of 2019 despite slower sales. For the first six months of 2019, the volume of single-family home sales on Oahu decreased 3.7 percent and median sales prices were down 0.5 percent compared with the same period in 2018. The volume of condominium sales during the first half of 2019 on Oahu declined 8.8 percent with median sales prices 1.4 percent lower than 2018. As of June 30, 2019, months of inventory of single-family homes and condominiums on Oahu remained low at 3.6 months and 3.9 months, respectively. More information on current Hawaii economic trends is presented in Table 15.

Conference Call Information

The Company will review its second quarter 2019 financial results today at 2:00 p.m. Eastern Time (8:00 a.m. Hawaii Time). The call will be accessible via teleconference and via the investor relations link of Bank of Hawaii Corporation's website, www.boh.com. The toll-free number is 1 (844) 543-5235 in the United States and Canada and 1 (703) 318-2209 for other international callers. Use the pass code “Bank of Hawaii” to access the call. A replay will be available for one week beginning approximately 11:00 a.m. Hawaii Time on Monday, July 22, 2019. The replay number is 1 (855) 859-2056 in the United States and Canada and 1 (404) 537-3406 from other international locations. Enter the conference ID 5038719 when prompted. In addition, a replay will be available on the Company's website, www.boh.com.

Forward-Looking Statements

This news release, and other statements made by the Company in connection with it may contain "forward-looking statements", such as forecasts of our financial results and condition, expectations for our operations and business prospects, and our assumptions used in those forecasts and expectations. Do not unduly rely on forward-looking statements. Actual results might differ significantly from our forecasts and expectations because of a variety of factors. More information about these factors is contained in Bank of Hawaii Corporation's Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the U.S. Securities and Exchange Commission. We have not committed to update forward-looking statements to reflect later events or circumstances.

Bank of Hawaii Corporation is a regional financial services company serving businesses, consumers, and governments in Hawaii, American Samoa, and the West Pacific. The Company’s principal subsidiary, Bank of Hawaii, was founded in 1897. For more information about Bank of Hawaii Corporation, see the Company’s web site, www.boh.com.

Bank of Hawaii Corporation and Subsidiaries
Financial Highlights													Table 1
	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
(dollars in thousands, except per share amounts)	2019			2019			2018			2019			2018
For the Period:
Operating Results
Net Interest Income	$	124,097		$	124,837		$	120,496		$	248,934		$	239,452
Provision for Credit Losses		4,000			3,000			3,500			7,000			7,625
Total Noninterest Income		45,450			43,679			41,298			89,129			85,333
Total Noninterest Expense		92,725			93,057			90,791			185,782			185,175
Net Income		56,919			58,799			54,718			115,718			108,758
Basic Earnings Per Share		1.40			1.44			1.31			2.84			2.59
Diluted Earnings Per Share		1.40			1.43			1.30			2.82			2.57
Dividends Declared Per Share		0.65			0.62			0.60			1.27			1.12
Performance Ratios
Return on Average Assets		1.31	%		1.38	%		1.30	%		1.34	%		1.29	%
Return on Average Shareholders' Equity		17.97			18.81			17.68			18.39			17.71
Efficiency Ratio 1		54.69			55.22			56.12			54.95			57.01
Net Interest Margin 2		3.04			3.12			3.04			3.08			3.02
Dividend Payout Ratio 3		46.43			43.06			45.80			44.72			43.24
Average Shareholders' Equity to Average Assets		7.27			7.35			7.34			7.31			7.31
Average Balances
Average Loans and Leases	$	10,631,558		$	10,467,321		$	9,962,860		$	10,549,893		$	9,883,746
Average Assets		17,480,651			17,236,059			16,921,820			17,359,031			16,939,527
Average Deposits		15,162,782			14,971,404			14,709,299			15,067,622			14,714,752
Average Shareholders' Equity		1,270,162			1,267,438			1,241,672			1,268,808			1,238,628
Per Share of Common Stock
Book Value	$	31.61		$	30.91		$	29.65		$	31.61		$	29.65
Tangible Book Value		30.83			30.14			28.90			30.83			28.90
Market Value
Closing		82.91			78.87			83.42			82.91			83.42
High		84.53			83.94			88.92			84.53			89.09
Low		75.24			66.54			80.20			66.54			78.40
				June 30,			March 31,			December 31,			June 30,
				2019				2019			2018			2018
As of Period End:
Balance Sheet Totals
Loans and Leases				$	10,759,129		$	10,548,609		$	10,448,774		$	10,053,323
Total Assets					17,688,845			17,446,413			17,143,974			17,124,162
Total Deposits					15,488,821			15,267,310			15,027,242			14,943,358
Other Debt					110,605			110,624			135,643			235,681
Total Shareholders' Equity					1,285,948			1,269,690			1,268,200			1,247,717
Asset Quality
Non-Performing Assets				$	21,782		$	17,925		$	12,930		$	15,157
Allowance for Loan and Lease Losses					107,672			106,023			106,693			108,188
Allowance to Loans and Leases Outstanding					1.00	%		1.01	%		1.02	%		1.08	%
Capital Ratios
Common Equity Tier 1 Capital Ratio					12.46	%		12.75	%		13.07	%		13.27	%
Tier 1 Capital Ratio					12.46			12.75			13.07			13.27
Total Capital Ratio					13.57			13.87			14.21			14.47
Tier 1 Leverage Ratio					7.36			7.46			7.60			7.53
Total Shareholders' Equity to Total Assets					7.27			7.28			7.40			7.29
Tangible Common Equity to Tangible Assets 4					7.10			7.11			7.23			7.12
Tangible Common Equity to Risk-Weighted Assets 4					12.17			12.28			12.52			12.68
Non-Financial Data
Full-Time Equivalent Employees					2,152			2,112			2,122			2,173
Branches					68			69			69			69
ATMs					383			385			382			385

1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and total noninterest income).

2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

3 Dividend payout ratio is defined as dividends declared per share divided by basic earnings per share.

4 Tangible common equity to tangible assets and tangible common equity to risk-weighted assets are Non-GAAP financial measures. See Table 2 “Reconciliation of Non-GAAP Financial Measures."

Bank of Hawaii Corporation and Subsidiaries
Reconciliation of Non-GAAP Financial Measures																Table 2
				June 30,				March 31,				December 31,				June 30,
(dollars in thousands)					2019				2019				2018				2018
Total Shareholders' Equity				$	1,285,948			$	1,269,690			$	1,268,200			$	1,247,717
Less: Goodwill					31,517				31,517				31,517				31,517
Tangible Common Equity				$	1,254,431			$	1,238,173			$	1,236,683			$	1,216,200
Total Assets				$	17,688,845			$	17,446,413			$	17,143,974			$	17,124,162
Less: Goodwill					31,517				31,517				31,517				31,517
Tangible Assets				$	17,657,328			$	17,414,896			$	17,112,457			$	17,092,645
Risk-Weighted Assets, determined in accordance with prescribed regulatory requirements				$	10,309,085			$	10,079,858			$	9,878,904			$	9,593,242
Total Shareholders' Equity to Total Assets					7.27	%			7.28	%			7.40	%			7.29	%
Tangible Common Equity to Tangible Assets (Non-GAAP)					7.10	%			7.11	%			7.23	%			7.12	%
Tier 1 Capital Ratio					12.46	%			12.75	%			13.07	%			13.27	%
Tangible Common Equity to Risk-Weighted Assets (Non-GAAP)					12.17	%			12.28	%			12.52	%			12.68	%

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Income														Table 3
	Three Months Ended										Six Months Ended
	June 30,			March 31,			June 30,				June 30,
(dollars in thousands, except per share amounts)		2019			2019			2018				2019			2018
Interest Income
Interest and Fees on Loans and Leases	$	110,401		$	108,511		$	101,311			$	218,912		$	198,945
Income on Investment Securities
Available-for-Sale		15,072			13,432			12,380				28,504			24,521
Held-to-Maturity		22,149			21,921			20,711				44,070			42,007
Deposits		9			15			(4	)			24			14
Funds Sold		730			1,444			846				2,174			1,603
Other		210			319			341				529			641
Total Interest Income		148,571			145,642			135,585				294,213			267,731
Interest Expense
Deposits		18,628			15,284			9,459				33,912			17,040
Securities Sold Under Agreements to Repurchase		4,623			4,571			4,617				9,194			9,181
Funds Purchased		512			157			83				669			136
Short-Term Borrowings		1			36			13				37			29
Other Debt		710			757			917				1,467			1,893
Total Interest Expense		24,474			20,805			15,089				45,279			28,279
Net Interest Income		124,097			124,837			120,496				248,934			239,452
Provision for Credit Losses		4,000			3,000			3,500				7,000			7,625
Net Interest Income After Provision for Credit Losses		120,097			121,837			116,996				241,934			231,827
Noninterest Income
Trust and Asset Management		11,385			10,761			11,356				22,146			22,537
Mortgage Banking		3,336			2,287			2,179				5,623			4,324
Service Charges on Deposit Accounts		7,283			7,364			6,865				14,647			13,994
Fees, Exchange, and Other Service Charges		14,252			14,208			14,400				28,460			28,733
Investment Securities Gains (Losses), Net		(776	)		(835	)		(1,702	)			(1,611	)		(2,368	)
Annuity and Insurance		1,806			2,578			1,847				4,384			3,053
Bank-Owned Life Insurance		1,779			1,710			1,796				3,489			3,638
Other		6,385			5,606			4,557				11,991			11,422
Total Noninterest Income		45,450			43,679			41,298				89,129			85,333
Noninterest Expense
Salaries and Benefits		53,511			56,586			52,148				110,097			106,570
Net Occupancy		8,579			7,594			8,588				16,173			17,122
Net Equipment		6,895			6,833			5,845				13,728			11,372
Data Processing		4,727			4,526			4,563				9,253			8,454
Professional Fees		2,177			2,453			2,546				4,630			5,319
FDIC Insurance		1,290			1,269			2,182				2,559			4,339
Other		15,546			13,796			14,919				29,342			31,999
Total Noninterest Expense		92,725			93,057			90,791				185,782			185,175
Income Before Provision for Income Taxes		72,822			72,459			67,503				145,281			131,985
Provision for Income Taxes		15,903			13,660			12,785				29,563			23,227
Net Income	$	56,919		$	58,799		$	54,718			$	115,718		$	108,758
Basic Earnings Per Share	$	1.40		$	1.44		$	1.31			$	2.84		$	2.59
Diluted Earnings Per Share	$	1.40		$	1.43		$	1.30			$	2.82		$	2.57
Dividends Declared Per Share	$	0.65		$	0.62		$	0.60			$	1.27		$	1.12
Basic Weighted Average Shares		40,541,594			40,938,318			41,884,221				40,738,772			41,960,743
Diluted Weighted Average Shares		40,769,767			41,213,453			42,152,200				40,988,001			42,252,900

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Comprehensive Income																	Table 4
			Three Months Ended											Six Months Ended
			June 30,			March 31,			June 30,					June 30,
(dollars in thousands)				2019			2019			2018					2019			2018
Net Income			$	56,919		$	58,799		$	54,718				$	115,718		$	108,758
Other Comprehensive Income (Loss), Net of Tax:
	Net Unrealized Gains (Losses) on Investment Securities			16,209			6,919			(2,974	)				23,128			(12,095	)
	Defined Benefit Plans			245			246			216					491			432
Other Comprehensive Income (Loss)				16,454			7,165			(2,758	)				23,619			(11,663	)
Comprehensive Income			$	73,373		$	65,964		$	51,960				$	139,337		$	97,095

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Condition										Table 5
	June 30,			March 31,			December 31,			June 30,
(dollars in thousands)		2019			2019			2018			2018
Assets
Interest-Bearing Deposits in Other Banks	$	3,859		$	3,550		$	3,028		$	3,524
Funds Sold		204,340			243,867			198,860			361,933
Investment Securities
Available-for-Sale		2,649,949			1,859,256			2,007,942			2,092,870
Held-to-Maturity (Fair Value of $2,973,229; $3,637,496; $3,413,994; and $3,500,497)		2,959,611			3,668,811			3,482,092			3,595,891
Loans Held for Sale		22,706			17,909			10,987			16,025
Loans and Leases		10,759,129			10,548,609			10,448,774			10,053,323
Allowance for Loan and Lease Losses		(107,672	)		(106,023	)		(106,693	)		(108,188	)
Net Loans and Leases		10,651,457			10,442,586			10,342,081			9,945,135
Total Earning Assets		16,491,922			16,235,979			16,044,990			16,015,378
Cash and Due from Banks		282,164			293,871			324,081			312,303
Premises and Equipment, Net		169,671			159,344			151,837			142,791
Operating Lease Right-of-Use Assets		103,336			104,166			-			-
Accrued Interest Receivable		49,726			52,820			51,230			50,594
Foreclosed Real Estate		2,737			3,225			1,356			2,926
Mortgage Servicing Rights		24,233			24,149			24,310			24,583
Goodwill		31,517			31,517			31,517			31,517
Bank-Owned Life Insurance		285,295			285,155			283,771			281,018
Other Assets		248,244			256,187			230,882			263,052
Total Assets	$	17,688,845		$	17,446,413		$	17,143,974		$	17,124,162
Liabilities
Deposits
Noninterest-Bearing Demand	$	4,528,251		$	4,595,915		$	4,739,596		$	4,729,203
Interest-Bearing Demand		3,033,066			2,961,444			3,002,925			3,111,069
Savings		6,004,528			5,946,881			5,539,199			5,389,763
Time		1,922,976			1,763,070			1,745,522			1,713,323
Total Deposits		15,488,821			15,267,310			15,027,242			14,943,358
Short-Term Borrowings		-			-			199			330
Securities Sold Under Agreements to Repurchase		504,299			504,299			504,296			504,193
Other Debt		110,605			110,624			135,643			235,681
Operating Lease Liabilities		110,483			111,230			-			-
Retirement Benefits Payable		40,047			40,343			40,494			36,730
Accrued Interest Payable		9,454			8,474			8,253			7,395
Taxes Payable and Deferred Taxes		21,337			29,935			19,736			15,136
Other Liabilities		117,851			104,508			139,911			133,622
Total Liabilities		16,402,897			16,176,723			15,875,774			15,876,445
Shareholders' Equity
Common Stock ($.01 par value; authorized 500,000,000 shares; issued / outstanding: June 30, 2019 - 58,175,367 / 40,687,719; March 31, 2019 - 58,166,535 / 41,078,688; December 31, 2018 - 58,063,689 / 41,499,898; and June 30, 2018 - 58,070,285 / 42,084,066)		579			578			577			577
Capital Surplus		577,346			574,594			571,704			566,436
Accumulated Other Comprehensive Loss		(27,424	)		(43,878	)		(51,043	)		(53,855	)
Retained Earnings		1,704,993			1,674,264			1,641,314			1,581,168
Treasury Stock, at Cost (Shares: June 30, 2019 - 17,487,648; March 31, 2019 - 17,087,847; December 31, 2018 - 16,563,791; and June 30, 2018 - 15,986,219)		(969,546	)		(935,868	)		(894,352	)		(846,609	)
Total Shareholders' Equity		1,285,948			1,269,690			1,268,200			1,247,717
Total Liabilities and Shareholders' Equity	$	17,688,845		$	17,446,413		$	17,143,974		$	17,124,162

Bank of Hawaii Corporation and Subsidiaries
Consolidated Statements of Shareholders' Equity																							Table 6
											Accum.
											Other
											Compre-
											hensive
		Common Shares			Common			Capital			Income				Retained				Treasury
(dollars in thousands)		Outstanding			Stock			Surplus			(Loss)				Earnings				Stock				Total
Balance as of December 31, 2018		41,499,898			$	577		$	571,704		$	(51,043	)		$	1,641,314			$	(894,352	)		$	1,268,200
Net Income		-				-			-			-				115,718				-				115,718
Other Comprehensive Income		-				-			-			23,619				-				-				23,619
Share-Based Compensation		-				-			4,438			-				-				-				4,438
Common Stock Issued under Purchase and Equity
Compensation Plans		174,709				2			1,204			-				162				2,981				4,349
Common Stock Repurchased		(986,888	)			-			-			-				-				(78,175	)			(78,175	)
Cash Dividends Declared ($1.27 per share)		-				-			-			-				(52,201	)			-				(52,201	)
Balance as of June 30, 2019		40,687,719			$	579		$	577,346		$	(27,424	)		$	1,704,993			$	(969,546	)		$	1,285,948
Balance as of December 31, 2017		42,401,443			$	576		$	561,161		$	(34,715	)		$	1,512,218			$	(807,372	)		$	1,231,868
Net Income		-				-			-			-				108,758				-				108,758
Other Comprehensive Loss		-				-			-			(11,663	)			-				-				(11,663	)
Reclassification of the Income Tax Effects of the
Tax Cuts and Jobs Act from AOCI		-				-			-			(7,477	)			7,477				-				-
Share-Based Compensation		-				-			4,055			-				-				-				4,055
Common Stock Issued under Purchase and Equity
Compensation Plans		179,644				1			1,220			-				166				2,992				4,379
Common Stock Repurchased		(497,021	)			-			-			-				-				(42,229	)			(42,229	)
Cash Dividends Declared ($1.12 per share)		-				-			-			-				(47,451	)			-				(47,451	)
Balance as of June 30, 2018		42,084,066			$	577		$	566,436		$	(53,855	)		$	1,581,168			$	(846,609	)		$	1,247,717

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis																	Table 7a
	Three Months Ended						Three Months Ended						Three Months Ended
	June 30, 2019						March 31, 2019						June 30, 2018
	Average		Income/		Yield/		Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	2.9	$	-	1.25	%	$	3.0	$	-	2.05	%	$	2.9	$	-	(0.52	)	%
Funds Sold		123.6		0.8	2.34			241.6		1.5	2.39			185.2		0.8	1.81
Investment Securities
Available-for-Sale
Taxable		2,004.3		14.3	2.87			1,595.8		11.5	2.90			1,564.5		9.2	2.35
Non-Taxable		86.8		0.9	4.15			279.1		2.4	3.45			583.6		4.0	2.78
Held-to-Maturity
Taxable		3,358.0		21.0	2.50			3,373.5		20.5	2.43			3,471.7		19.2	2.22
Non-Taxable		193.0		1.5	3.08			234.1		1.8	3.15			237.1		1.9	3.17
Total Investment Securities		5,642.1		37.7	2.68			5,482.5		36.2	2.65			5,856.9		34.3	2.35
Loans Held for Sale		18.7		0.2	4.05			12.4		0.1	4.35			14.8		0.2	4.44
Loans and Leases 1
Commercial and Industrial		1,385.7		14.9	4.31			1,357.8		15.3	4.57			1,307.6		12.8	3.92
Commercial Mortgage		2,386.3		25.9	4.35			2,310.4		24.9	4.36			2,123.5		21.9	4.13
Construction		125.3		1.7	5.51			150.4		1.9	5.08			183.4		2.2	4.82
Commercial Lease Financing		159.9		1.0	2.49			160.9		0.9	2.28			179.4		1.0	2.24
Residential Mortgage		3,730.4		36.0	3.87			3,680.2		35.5	3.86			3,526.9		33.6	3.81
Home Equity		1,694.9		16.2	3.83			1,690.0		16.1	3.87			1,612.7		15.1	3.76
Automobile		688.5		6.2	3.62			668.2		6.0	3.66			573.6		5.7	3.97
Other 2		460.6		8.4	7.33			449.4		7.9	7.13			455.8		8.9	7.86
Total Loans and Leases		10,631.6		110.3	4.16			10,467.3		108.5	4.18			9,962.9		101.2	4.07
Other		35.0		0.2	2.40			35.5		0.3	3.60			39.8		0.4	3.43
Total Earning Assets 3		16,453.9		149.2	3.63			16,242.3		146.6	3.64			16,062.5		136.9	3.41
Cash and Due from Banks		241.6						240.8						251.0
Other Assets		785.2						753.0						608.3
Total Assets	$	17,480.7					$	17,236.1					$	16,921.8
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	2,902.5		1.4	0.19		$	2,939.9		1.5	0.20		$	2,969.8		1.2	0.16
Savings		6,002.0		8.9	0.60			5,760.8		6.7	0.47			5,392.2		3.1	0.23
Time		1,866.6		8.3	1.79			1,703.4		7.1	1.69			1,705.7		5.2	1.21
Total Interest-Bearing Deposits		10,771.1		18.6	0.69			10,404.1		15.3	0.60			10,067.7		9.5	0.38
Short-Term Borrowings		82.3		0.5	2.46			31.1		0.2	2.49			21.0		0.1	1.80
Securities Sold Under Agreements to Repurchase		504.3		4.7	3.63			504.3		4.6	3.63			505.1		4.6	3.62
Other Debt		110.6		0.7	2.57			120.0		0.7	2.55			235.7		0.9	1.56
Total Interest-Bearing Liabilities		11,468.3		24.5	0.85			11,059.5		20.8	0.76			10,829.5		15.1	0.56
Net Interest Income			$	124.7					$	125.8					$	121.8
Interest Rate Spread					2.78	%					2.88	%					2.85		%
Net Interest Margin					3.04	%					3.12	%					3.04		%
Noninterest-Bearing Demand Deposits		4,391.7						4,567.3						4,641.6
Other Liabilities		350.5						341.9						209.0
Shareholders' Equity		1,270.2						1,267.4						1,241.7
Total Liabilities and Shareholders' Equity	$	17,480.7					$	17,236.1					$	16,921.8

1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $601,000, $981,000, and $1,298,000 for the three months ended June 30, 2019, March 31, 2019, and June 30, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Average Balances and Interest Rates - Taxable-Equivalent Basis											Table 7b
	Six Months Ended						Six Months Ended
	June 30, 2019						June 30, 2018
	Average		Income/		Yield/		Average		Income/		Yield/
(dollars in millions)	Balance		Expense		Rate		Balance		Expense		Rate
Earning Assets
Interest-Bearing Deposits in Other Banks	$	2.9	$	-	1.65	%	$	2.9	$	-	0.94	%
Funds Sold		182.3		2.2	2.37			194.9		1.6	1.64
Investment Securities
Available-for-Sale
Taxable		1,801.2		25.9	2.88			1,579.7		18.0	2.29
Non-Taxable		182.5		3.3	3.63			594.1		8.2	2.76
Held-to-Maturity
Taxable		3,365.7		41.5	2.46			3,551.0		39.0	2.20
Non-Taxable		213.4		3.3	3.12			237.6		3.8	3.17
Total Investment Securities		5,562.8		74.0	2.66			5,962.4		69.0	2.32
Loans Held for Sale		15.6		0.3	4.16			14.5		0.3	4.11
Loans and Leases 1
Commercial and Industrial		1,371.8		30.2	4.43			1,294.3		24.6	3.83
Commercial Mortgage		2,348.6		50.7	4.36			2,110.0		42.4	4.06
Construction		137.8		3.6	5.27			186.4		4.3	4.63
Commercial Lease Financing		160.4		1.9	2.38			179.5		2.0	2.22
Residential Mortgage		3,705.4		71.5	3.86			3,502.6		66.9	3.82
Home Equity		1,692.5		32.3	3.85			1,604.1		29.7	3.73
Automobile		678.4		12.3	3.64			557.7		11.3	4.08
Other 2		455.0		16.3	7.23			449.1		17.6	7.88
Total Loans and Leases		10,549.9		218.8	4.17			9,883.7		198.8	4.04
Other		35.2		0.5	3.00			40.3		0.7	3.19
Total Earning Assets 3		16,348.7		295.8	3.63			16,098.7		270.4	3.37
Cash and Due from Banks		241.2						239.9
Other Assets		769.1						600.9
Total Assets	$	17,359.0					$	16,939.5
Interest-Bearing Liabilities
Interest-Bearing Deposits
Demand	$	2,921.1		2.8	0.20		$	2,974.0		1.9	0.13
Savings		5,882.1		15.7	0.54			5,379.3		5.3	0.20
Time		1,785.4		15.4	1.74			1,709.6		9.8	1.16
Total Interest-Bearing Deposits		10,588.6		33.9	0.65			10,062.9		17.0	0.34
Short-Term Borrowings		56.8		0.7	2.47			20.0		0.2	1.64
Securities Sold Under Agreements to Repurchase		504.3		9.2	3.63			505.2		9.2	3.61
Other Debt		115.3		1.5	2.56			246.3		1.9	1.55
Total Interest-Bearing Liabilities		11,265.0		45.3	0.81			10,834.4		28.3	0.52
Net Interest Income			$	250.5					$	242.1
Interest Rate Spread					2.82	%					2.85	%
Net Interest Margin					3.08	%					3.02	%
Noninterest-Bearing Demand Deposits		4,479.0						4,651.9
Other Liabilities		346.2						214.6
Shareholders' Equity		1,268.8						1,238.6
Total Liabilities and Shareholders' Equity	$	17,359.0					$	16,939.5

1 Non-performing loans and leases are included in the respective average loan and lease balances. Income, if any, on such loans and leases is recognized on a cash basis.

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

3 Interest income includes taxable-equivalent basis adjustments, based upon a federal statutory tax rate of 21%, of $1,582,000 and $2,642,000 for the six months ended June 30, 2019 and June 30, 2018, respectively.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8a
	Three Months Ended June 30, 2019
	Compared to March 31, 2019
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.7	)	$	-		$	(0.7	)
Investment Securities
Available-for-Sale
Taxable		2.9			(0.1	)		2.8
Non-Taxable		(1.9	)		0.4			(1.5	)
Held-to-Maturity
Taxable		(0.1	)		0.6			0.5
Non-Taxable		(0.3	)		-			(0.3	)
Total Investment Securities		0.6			0.9			1.5
Loans Held for Sale		0.1			-			0.1
Loans and Leases
Commercial and Industrial		0.4			(0.8	)		(0.4	)
Commercial Mortgage		1.1			(0.1	)		1.0
Construction		(0.3	)		0.1			(0.2	)
Commercial Lease Financing		-			0.1			0.1
Residential Mortgage		0.5			-			0.5
Home Equity		0.1			-			0.1
Automobile		0.2			-			0.2
Other 2		0.2			0.3			0.5
Total Loans and Leases		2.2			(0.4	)		1.8
Other		-			(0.1	)		(0.1	)
Total Change in Interest Income		2.2			0.4			2.6
Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			(0.1	)		(0.1	)
Savings		0.3			1.9			2.2
Time		0.7			0.5			1.2
Total Interest-Bearing Deposits		1.0			2.3			3.3
Short-Term Borrowings		0.3			-			0.3
Securities Sold Under Agreements to Repurchase		-			0.1			0.1
Total Change in Interest Expense		1.3			2.4			3.7
Change in Net Interest Income	$	0.9		$	(2.0	)	$	(1.1	)

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8b
	Three Months Ended June 30, 2019
	Compared to June 30, 2018
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.2	)	$	0.2		$	-
Investment Securities
Available-for-Sale
Taxable		2.8			2.3			5.1
Non-Taxable		(4.5	)		1.4			(3.1	)
Held-to-Maturity
Taxable		(0.6	)		2.4			1.8
Non-Taxable		(0.3	)		(0.1	)		(0.4	)
Total Investment Securities		(2.6	)		6.0			3.4
Loans and Leases
Commercial and Industrial		0.8			1.3			2.1
Commercial Mortgage		2.8			1.2			4.0
Construction		(0.8	)		0.3			(0.5	)
Commercial Lease Financing		(0.1	)		0.1			-
Residential Mortgage		1.9			0.5			2.4
Home Equity		0.8			0.3			1.1
Automobile		1.1			(0.6	)		0.5
Other 2		0.1			(0.6	)		(0.5	)
Total Loans and Leases		6.6			2.5			9.1
Other		(0.1	)		(0.1	)		(0.2	)
Total Change in Interest Income		3.7			8.6			12.3
Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.2			0.2
Savings		0.4			5.4			5.8
Time		0.4			2.7			3.1
Total Interest-Bearing Deposits		0.8			8.3			9.1
Short-Term Borrowings		0.4			-			0.4
Securities Sold Under Agreements to Repurchase		-			0.1			0.1
Other Debt		(0.6	)		0.4			(0.2	)
Total Change in Interest Expense		0.6			8.8			9.4
Change in Net Interest Income	$	3.1		$	(0.2	)	$	2.9

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Analysis of Change in Net Interest Income - Taxable-Equivalent Basis							Table 8c
	Six Months Ended June 30, 2019
	Compared to June 30, 2018
(dollars in millions)	Volume 1			Rate 1			Total
Change in Interest Income:
Funds Sold	$	(0.1	)	$	0.7		$	0.6
Investment Securities
Available-for-Sale
Taxable		2.8			5.1			7.9
Non-Taxable		(6.9	)		2.0			(4.9	)
Held-to-Maturity
Taxable		(2.1	)		4.6			2.5
Non-Taxable		(0.4	)		(0.1	)		(0.5	)
Total Investment Securities		(6.6	)		11.6			5.0
Loans and Leases
Commercial and Industrial		1.5			4.1			5.6
Commercial Mortgage		5.0			3.3			8.3
Construction		(1.2	)		0.5			(0.7	)
Commercial Lease Financing		(0.2	)		0.1			(0.1	)
Residential Mortgage		3.9			0.7			4.6
Home Equity		1.7			0.9			2.6
Automobile		2.3			(1.3	)		1.0
Other 2		0.2			(1.5	)		(1.3	)
Total Loans and Leases		13.2			6.8			20.0
Other		(0.1	)		(0.1	)		(0.2	)
Total Change in Interest Income		6.4			19.0			25.4
Change in Interest Expense:
Interest-Bearing Deposits
Demand		-			0.9			0.9
Savings		0.5			9.9			10.4
Time		0.5			5.1			5.6
Total Interest-Bearing Deposits		1.0			15.9			16.9
Short-Term Borrowings		0.4			0.1			0.5
Other Debt		(1.3	)		0.9			(0.4	)
Total Change in Interest Expense		0.1			16.9			17.0
Change in Net Interest Income	$	6.3		$	2.1		$	8.4

1 The change in interest income and expense not solely due to changes in volume or rate has been allocated on a pro-rata basis to the volume and rate columns.

2 Comprised of other consumer revolving credit, installment, and consumer lease financing.

Bank of Hawaii Corporation and Subsidiaries
Salaries and Benefits										Table 9
	Three Months Ended							Six Months Ended
	June 30,		March 31,		June 30,			June 30,
(dollars in thousands)	2019		2019		2018			2019		2018
Salaries	$	32,834	$	32,480	$	33,269		$	65,314	$	65,973
Incentive Compensation		5,464		5,904		4,416			11,368		9,594
Share-Based Compensation		1,994		3,079		2,423			5,073		4,504
Commission Expense		1,704		930		1,272			2,634		2,226
Retirement and Other Benefits		4,580		5,107		4,178			9,687		9,019
Payroll Taxes		2,643		4,247		2,568			6,890		6,740
Medical, Dental, and Life Insurance		3,926		4,465		3,820			8,391		7,281
Separation Expense		366		374		202			740		1,233
Total Salaries and Benefits	$	53,511	$	56,586	$	52,148		$	110,097	$	106,570

Bank of Hawaii Corporation and Subsidiaries
Loan and Lease Portfolio Balances										Table 10
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)			2019		2019		2018		2018		2018
Commercial
	Commercial and Industrial	$	1,408,729	$	1,331,345	$	1,331,149	$	1,314,609	$	1,282,967
	Commercial Mortgage		2,411,289		2,381,213		2,302,356		2,237,020		2,169,357
	Construction		119,228		132,775		170,061		176,447		185,350
	Lease Financing		163,070		154,919		176,226		172,232		178,598
Total Commercial			4,102,316		4,000,252		3,979,792		3,900,308		3,816,272
Consumer
	Residential Mortgage		3,785,006		3,702,553		3,673,796		3,596,627		3,548,444
	Home Equity		1,694,577		1,698,666		1,681,442		1,625,208		1,622,314
	Automobile		703,523		676,730		658,133		625,086		592,705
	Other 1		473,707		470,408		455,611		483,833		473,588
Total Consumer			6,656,813		6,548,357		6,468,982		6,330,754		6,237,051
Total Loans and Leases		$	10,759,129	$	10,548,609	$	10,448,774	$	10,231,062	$	10,053,323
Deposits
		June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)			2019		2019		2018		2018		2018
Consumer		$	7,880,284	$	7,944,793	$	7,726,731	$	7,627,527	$	7,672,435
Commercial			6,178,984		6,162,042		6,098,186		5,967,343		5,921,414
Public and Other			1,429,553		1,160,475		1,202,325		1,248,465		1,349,509
Total Deposits		$	15,488,821	$	15,267,310	$	15,027,242	$	14,843,335	$	14,943,358

1 Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More														Table 11
		June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)			2019			2019			2018			2018			2018
Non-Performing Assets
Non-Accrual Loans and Leases
Commercial
Commercial and Industrial		$	552		$	393		$	542		$	1,205		$	917
Commercial Mortgage			11,310			5,911			2,040			652			659
Total Commercial			11,862			6,304			2,582			1,857			1,576
Consumer
Residential Mortgage			4,697			5,599			5,321			6,359			6,722
Home Equity			2,486			2,797			3,671			3,673			3,933
Total Consumer			7,183			8,396			8,992			10,032			10,655
Total Non-Accrual Loans and Leases			19,045			14,700			11,574			11,889			12,231
Foreclosed Real Estate			2,737			3,225			1,356			1,909			2,926
Total Non-Performing Assets		$	21,782		$	17,925		$	12,930		$	13,798		$	15,157
Accruing Loans and Leases Past Due 90 Days or More
Commercial
Commercial and Industrial		$	-		$	66		$	10		$	-		$	2
Commercial Mortgage			-			-			-			-			5,680
Total Commercial			-			66			10			-			5,682
Consumer
Residential Mortgage		$	1,859		$	903		$	2,446		$	2,426		$	2,281
Home Equity			2,981			3,381			2,684			3,112			3,016
Automobile			607			734			513			829			674
Other 1			963			1,033			914			1,727			1,660
Total Consumer			6,410			6,051			6,557			8,094			7,631
Total Accruing Loans and Leases Past Due 90 Days or More		$	6,410		$	6,117		$	6,567		$	8,094		$	13,313
Restructured Loans on Accrual Status and Not Past Due 90 Days or More		$	48,563		$	48,571		$	48,731		$	49,462		$	50,212
Total Loans and Leases		$	10,759,129		$	10,548,609		$	10,448,774		$	10,231,062		$	10,053,323
Ratio of Non-Accrual Loans and Leases to Total Loans and Leases			0.18	%		0.14	%		0.11	%		0.12	%		0.12	%
Ratio of Non-Performing Assets to Total Loans and Leases and Foreclosed Real Estate			0.20	%		0.17	%		0.12	%		0.13	%		0.15	%
Ratio of Commercial Non-Performing Assets to Total Commercial Loans and Leases and Commercial Foreclosed Real Estate			0.29	%		0.16	%		0.06	%		0.05	%		0.04	%
Ratio of Consumer Non-Performing Assets to Total Consumer Loans and Leases and Consumer Foreclosed Real Estate			0.15	%		0.18	%		0.16	%		0.19	%		0.22	%
Ratio of Non-Performing Assets and Accruing Loans and Leases Past Due 90 Days or More to Total Loans and Leases and Foreclosed Real Estate			0.26	%		0.23	%		0.19	%		0.21	%		0.28	%
Quarter to Quarter Changes in Non-Performing Assets
Balance at Beginning of Quarter		$	17,925		$	12,930		$	13,798		$	15,157		$	15,736
Additions			6,186			8,217			4,509			2,030			1,949
Reductions
Payments			(441	)		(989	)		(3,759	)		(415	)		(1,847	)
Return to Accrual Status			(1,344	)		(316	)		(605	)		(1,420	)		(126	)
Sales of Foreclosed Real Estate			(374	)		-			(653	)		(1,301	)		(421	)
Charge-offs/Write-downs			(170	)		(1,917	)		(360	)		(253	)		(134	)
Total Reductions			(2,329	)		(3,222	)		(5,377	)		(3,389	)		(2,528	)
Balance at End of Quarter		$	21,782		$	17,925		$	12,930		$	13,798		$	15,157

1 Comprised of other revolving credit, installment, and lease financing.

Bank of Hawaii Corporation and Subsidiaries
Reserve for Credit Losses																			Table 12
		Three Months Ended													Six Months Ended
		June 30,				March 31,				June 30,					June 30,
(dollars in thousands)				2019				2019				2018					2019				2018
Balance at Beginning of Period		$		112,845		$		113,515		$		114,760			$		113,515				114,168
Loans and Leases Charged-Off
Commercial
Commercial and Industrial				(206	)			(370	)			(485	)				(576	)			(691	)
Commercial Mortgage				-				(1,616	)			-					(1,616	)			-
Consumer
Residential Mortgage				(51	)			(4	)			(3	)				(55	)			(100	)
Home Equity				(145	)			(295	)			(44	)				(440	)			(135	)
Automobile				(1,691	)			(1,753	)			(1,515	)				(3,444	)			(3,769	)
Other 1				(3,036	)			(2,790	)			(3,614	)				(5,826	)			(6,954	)
Total Loans and Leases Charged-Off				(5,129	)			(6,828	)			(5,661	)				(11,957	)			(11,649	)
Recoveries on Loans and Leases Previously Charged-Off
Commercial
Commercial and Industrial				401				501				366					902				694
Consumer
Residential Mortgage				95				484				214					579				434
Home Equity				746				588				451					1,334				1,076
Automobile				908				881				738					1,789				1,337
Other 1				628				704				642					1,332				1,325
Total Recoveries on Loans and Leases Previously Charged-Off				2,778				3,158				2,411					5,936				4,866
Net Loans and Leases Charged-Off				(2,351	)			(3,670	)			(3,250	)				(6,021	)			(6,783	)
Provision for Credit Losses				4,000				3,000				3,500					7,000				7,625
Provision for Unfunded Commitments				-				-				-					-				-
Balance at End of Period 2		$		114,494		$		112,845		$		115,010			$		114,494		$		115,010
Components
Allowance for Loan and Lease Losses		$		107,672		$		106,023		$		108,188			$		107,672				108,188
Reserve for Unfunded Commitments				6,822				6,822				6,822					6,822				6,822
Total Reserve for Credit Losses		$		114,494		$		112,845		$		115,010			$		114,494		$		115,010
Average Loans and Leases Outstanding		$		10,631,558		$		10,467,321		$		9,962,860			$		10,549,893		$		9,883,746
Ratio of Net Loans and Leases Charged-Off to
Average Loans and Leases Outstanding (annualized)				0.09	%			0.14	%			0.13	%				0.12	%			0.14	%
Ratio of Allowance for Loan and Lease Losses to Loans and Leases Outstanding				1.00	%			1.01	%			1.08	%				1.00	%	1.08			%

1 Comprised of other revolving credit, installment, and lease financing.

2 Included in this analysis is activity related to the Company's reserve for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Statements of Condition.

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13a
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Three Months Ended June 30, 2019
Net Interest Income	$	67,217		$	45,703		$	9,846		$	1,331		$	124,097
Provision for Credit Losses		2,527			(175	)		(1	)		1,649			4,000
Net Interest Income After Provision for Credit Losses		64,690			45,878			9,847			(318	)		120,097
Noninterest Income		21,108			6,938			14,859			2,545			45,450
Noninterest Expense		(52,086	)		(21,260	)		(16,457	)		(2,922	)		(92,725	)
Income Before Provision for Income Taxes		33,712			31,556			8,249			(695	)		72,822
Provision for Income Taxes		(8,231	)		(7,945	)		(2,174	)		2,447			(15,903	)
Net Income	$	25,481		$	23,611		$	6,075		$	1,752		$	56,919
Total Assets as of June 30, 2019	$	6,586,854		$	4,089,452		$	337,484		$	6,675,055		$	17,688,845
Three Months Ended June 30, 2018
Net Interest Income	$	65,683		$	44,010		$	10,526		$	277		$	120,496
Provision for Credit Losses		3,445			(194	)		-			249			3,500
Net Interest Income After Provision for Credit Losses		62,238			44,204			10,526			28			116,996
Noninterest Income		19,598			5,512			14,745			1,443			41,298
Noninterest Expense		(51,939	)		(19,858	)		(16,400	)		(2,594	)		(90,791	)
Income Before Provision for Income Taxes		29,897			29,858			8,871			(1,123	)		67,503
Provision for Income Taxes		(7,473	)		(6,740	)		(2,338	)		3,766			(12,785	)
Net Income	$	22,424		$	23,118		$	6,533		$	2,643		$	54,718
Total Assets as of June 30, 2018	$	6,142,457		$	3,799,535		$	342,464		$	6,839,706		$	17,124,162

Bank of Hawaii Corporation and Subsidiaries
Business Segments Selected Financial Information													Table 13b
							Investment
							Services and
	Retail			Commercial			Private			Treasury			Consolidated
(dollars in thousands)	Banking			Banking			Banking			and Other			Total
Six Months Ended June 30, 2019
Net Interest Income	$	133,371		$	92,993		$	20,044		$	2,526		$	248,934
Provision for Credit Losses		4,768			1,271			(18	)		979			7,000
Net Interest Income After Provision for Credit Losses		128,603			91,722			20,062			1,547			241,934
Noninterest Income		42,341			13,999			28,104			4,685			89,129
Noninterest Expense		(104,610	)		(42,215	)		(33,360	)		(5,597	)		(185,782	)
Income Before Provision for Income Taxes		66,334			63,506			14,806			635			145,281
Provision for Income Taxes		(16,336	)		(13,947	)		(3,903	)		4,623			(29,563	)
Net Income	$	49,998		$	49,559		$	10,903		$	5,258		$	115,718
Total Assets as of June 30, 2019	$	6,586,854		$	4,089,452		$	337,484		$	6,675,055		$	17,688,845
Six Months Ended June 30, 2018
Net Interest Income	$	130,080		$	86,908		$	20,413		$	2,051		$	239,452
Provision for Credit Losses		7,188			(345	)		(60	)		842			7,625
Net Interest Income After Provision for Credit Losses		122,892			87,253			20,473			1,209			231,827
Noninterest Income		38,851			11,154			28,415			6,913			85,333
Noninterest Expense		(106,538	)		(40,190	)		(32,607	)		(5,840	)		(185,175	)
Income Before Provision for Income Taxes		55,205			58,217			16,281			2,282			131,985
Provision for Income Taxes		(13,764	)		(13,564	)		(4,292	)		8,393			(23,227	)
Net Income	$	41,441		$	44,653		$	11,989		$	10,675		$	108,758
Total Assets as of June 30, 2018	$	6,142,457		$	3,799,535		$	342,464		$	6,839,706		$	17,124,162

Bank of Hawaii Corporation and Subsidiaries
Selected Quarterly Financial Data																	Table 14
	Three Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,
(dollars in thousands, except per share amounts)		2019				2019				2018				2018				2018
Quarterly Operating Results
Interest Income
Interest and Fees on Loans and Leases	$	110,401			$	108,511			$	107,404			$	104,248			$	101,311
Income on Investment Securities
Available-for-Sale		15,072				13,432				13,043				12,588				12,380
Held-to-Maturity		22,149				21,921				21,482				20,821				20,711
Deposits		9				15				10				10				(4	)
Funds Sold		730				1,444				727				1,393				846
Other		210				319				352				364				341
Total Interest Income		148,571				145,642				143,018				139,424				135,585
Interest Expense
Deposits		18,628				15,284				13,172				10,931				9,459
Securities Sold Under Agreements to Repurchase		4,623				4,571				4,671				4,667				4,617
Funds Purchased		512				157				440				33				83
Short-Term Borrowings		1				36				88				28				13
Other Debt		710				757				674				838				917
Total Interest Expense		24,474				20,805				19,045				16,497				15,089
Net Interest Income		124,097				124,837				123,973				122,927				120,496
Provision for Credit Losses		4,000				3,000				2,000				3,800				3,500
Net Interest Income After Provision for Credit Losses		120,097				121,837				121,973				119,127				116,996
Noninterest Income
Trust and Asset Management		11,385				10,761				10,558				10,782				11,356
Mortgage Banking		3,336				2,287				2,148				1,965				2,179
Service Charges on Deposit Accounts		7,283				7,364				7,562				7,255				6,865
Fees, Exchange, and Other Service Charges		14,252				14,208				14,576				14,173				14,400
Investment Securities Gains (Losses), Net		(776	)			(835	)			(841	)			(729	)			(1,702	)
Annuity and Insurance		1,806				2,578				1,409				1,360				1,847
Bank-Owned Life Insurance		1,779				1,710				1,941				1,620				1,796
Other		6,385				5,606				4,755				5,056				4,557
Total Noninterest Income		45,450				43,679				42,108				41,482				41,298
Noninterest Expense
Salaries and Benefits		53,511				56,586				54,856				51,782				52,148
Net Occupancy		8,579				7,594				8,918				8,702				8,588
Net Equipment		6,895				6,833				6,364				6,116				5,845
Data Processing		4,727				4,526				5,151				4,241				4,563
Professional Fees		2,177				2,453				2,467				2,206				2,546
FDIC Insurance		1,290				1,269				1,336				2,057				2,182
Other		15,546				13,796				16,819				15,434				14,919
Total Noninterest Expense		92,725				93,057				95,911				90,538				90,791
Income Before Provision for Income Taxes		72,822				72,459				68,170				70,071				67,503
Provision for Income Taxes		15,903				13,660				14,259				13,138				12,785
Net Income	$	56,919			$	58,799			$	53,911			$	56,933			$	54,718
Basic Earnings Per Share	$	1.40			$	1.44			$	1.30			$	1.37			$	1.31
Diluted Earnings Per Share	$	1.40			$	1.43			$	1.30			$	1.36			$	1.30
Balance Sheet Totals
Loans and Leases	$	10,759,129			$	10,548,609			$	10,448,774			$	10,231,062			$	10,053,323
Total Assets		17,688,845				17,446,413				17,143,974				16,991,734				17,124,162
Total Deposits		15,488,821				15,267,310				15,027,242				14,843,335				14,943,358
Total Shareholders' Equity		1,285,948				1,269,690				1,268,200				1,253,327				1,247,717
Performance Ratios
Return on Average Assets		1.31		%		1.38		%		1.26		%		1.33		%		1.30		%
Return on Average Shareholders' Equity		17.97				18.81				17.05				18.06				17.68
Efficiency Ratio 1		54.69				55.22				57.75				55.07				56.12
Net Interest Margin 2		3.04				3.12				3.10				3.07				3.04

1 Efficiency ratio is defined as noninterest expense divided by total revenue (net interest income and noninterest income).

2 Net interest margin is defined as net interest income, on a taxable-equivalent basis, as a percentage of average earning assets.

Bank of Hawaii Corporation and Subsidiaries
Hawaii Economic Trends																Table 15
	Five Months Ended				Year Ended
($ in millions; jobs in thousands)	May 31, 2019				December 31, 2018							December 31, 2017
Hawaii Economic Trends
State General Fund Revenues 1	$	3,196.6	6.4	%	$	6,933.1			6.9		%	$	6,485.0		4.3	%
General Excise and Use Tax Revenue 1	$	1,551.9	8.3	%	$	3,426.5			2.3		%	$	3,349.8		4.5	%
Jobs 2		648.9				660.0							664.5
									June 30,			December 31,
(spot rates)									2019			2018			2017
Unemployment 3
Statewide, seasonally adjusted									2.8		%		2.5	%	2.1	%
Oahu									3.1				2.2		1.7
Island of Hawaii									4.1				2.9		2.0
Maui									3.1				2.3		1.8
Kauai									3.1				2.3		1.7
					June 30,				December 31,
(percentage change, except months of inventory)					2019				2018				2017		2016
Housing Trends (Single Family Oahu) 4
Median Home Price						(0.5	)	%	4.6		%		2.7	%	5.0	%
Home Sales Volume (units)						(3.7	)	%	(7.7	)	%		6.3	%	6.5	%
Months of Inventory						3.6			2.8				2.1		2.5
					Monthly Visitor Arrivals,							Percentage Change
(in thousands)					Not Seasonally Adjusted							from Previous Year
Tourism 5
May 31, 2019									841.4						4.6
April 30, 2019									856.3						6.6
March 31, 2019									939.1						3.9
February 28, 2019									782.6						0.5
January 31, 2019									820.6						3.0
December 31, 2018									910.1						3.4
November 30, 2018									782.0						4.3
October 31, 2018									770.4						4.4
September 30, 2018									724.9						3.5
August 31, 2018									845.1						3.2
July 31, 2018									939.4						5.3
June 30, 2018									897.1						7.3
May 31, 2018									804.1						7.0
April 30, 2018									803.0						6.6
March 31, 2018									903.6						12.5
February 28, 2018									778.6						10.3
January 31, 2018									796.5						5.4
December 31, 2017									879.7						6.2
November 30, 2017									749.5						7.5
October 31, 2017									737.6						2.9
September 30, 2017									700.5						4.9
August 31, 2017									818.6						4.8
July 31, 2017									891.9						6.8
June 30, 2017									835.9						4.5
May 31, 2017									751.2						4.5
April 30, 2017									753.0						7.5
March 31, 2017									802.8						2.1
February 28, 2017									706.1						2.5
January 31, 2017									756.0						4.9

1 Source: Hawaii Department of Business, Economic Development & Tourism

2 Source: U. S. Bureau of Labor Statistics

3 Source: Hawaii Department of Labor and Industrial Relations, County jobs data not seasonally adjusted.

4 Source: Honolulu Board of REALTORS

5 Source: Hawaii Tourism Authority

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20190722005155/en/

Source: Bank of Hawaii Corporation

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